How to be taken seriously being young with no money

3 Replies

Hello, BiggerPockets community, My name is Miguel, I'm in the south Florida area and I will get started investing in real estate this year. I recently turned 20 years old, I work part-time as an EMT (only about 10 hours a week currently,) I am a paramedic student and I plan on becoming a firefighter. I am concerned that because of my age and lack of money I will not be taken seriously by banks when trying to secure a mortgage. I currently have 2 credit cards with a total limit of $2,700 and a 716 TransUnion and 700 Equifax credit score on credit karma, but I feel like I will still get overlooked (I am planning on using the BRRR method to grow my assets.) Can anyone give me advice on figuring out how to secure a loan so I can begin investing in properties and be on my way to gaining financial freedom?

@Miguel Ramos welcome to the community!

From my own experience, the best thing you can do is study. You want as much "experience" under your belt and while you don't have the personal experience, many MANY people have shared their personal experiences in these forums, in books, & other blogs online. You should equate knowledge to experience at this point in your investing career. Read books, ask questions here in the BP forums, & begin to watch the market you currently live in. Are you renting? Watch where rent prices are compared to home sale prices. See the differences in prices (rent & home sales) in the "good" and "bad" parts of your market. Consider why that differenece (if any) exists.

Make your way to the BP marketplace and find a few books in there that BP has published. The first I would suggest is Brandon Turner's Book on Rental Property Investing and second, I would read his Book on Investing with No or Little Money Down - this will cater directly to your need but first you want the foundation of his 1st book and a little more knowledge (experience) in the REI community.

Whatever you do, don't give up - you're on the right path.

I don't think you need to worry about age or lack of experience if you're working with a reputable bank or a (good) lender. I am a lender and I come across plenty of people well into their late twenties and early thirties who don't know the first thing about buying or financing a house. And that's okay, because it is my job to educate them anyway. If you have the money and the credit score, banks are going to be willing to work with you. That is how they get paid. People will be even less inclined to notice or mention your age if you carry yourself well and speak with confidence. The only scenario I can see age or lack of experience being a hurdle is if you were trying to secure private or investor money.

Study (as said, really good tips there), from there figure out your game plan/business plan, then just start calling banks and talking to loan officers.  

Having some knowledge and a plan will help you from sounding completely newbie. I don't think they will care much about age, but will about money and/or experience. (based on what kind of loan)

If they can't help you, they should tell you why. Then focus on fixing the why. 

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